Federal health officials dropped regulations late Friday outlining how they plan to help insurance companies stuck with unanticipated costs due to ObamaCare’s botched rollout.
In a 279-page document, the Department of Health and Human Services (HHS) detailed adjustments to the healthcare law’s “risk corridors” program, a means for shifting money from insurers who fare better under the new system to those who fare worse. …
The change will mean that some companies see higher payments, or higher charges than under previous rules. The calculations will correspond with insurers’ administrative costs and on average, “suitably offset” any unexpected spending, according to the administration.
Specifically, HHS would raise the administrative cost ceiling from 20 percent to 22 percent, and increase the risk corridors’ profit margin floor from 3 percent to 5 percent.